A COUPLE with two children need to earn at least £40,000 a year to reach a decent standard of living, according to a new study.

The Joseph Rowntree Foundation (JSF) found that despite an increase in the national minimum wage, low-income families were falling further behind a minimum income standard.

Family of four needs to earn at least 340,00 a year to make ends meet

The minimum income standard set by the foundation is based on feedback from the public on what it thinks people need to achieve a decent living standard.

It includes clothes and food but also Christmas presents and a one-week holiday in the UK.

The research found that despite a 41 per cent increase in the National Minimum Wage since 2008, the gains had been offset by the rise in the cost of getting around, the increasing price of the weekly food shop as well as childcare costs.

A single person needs to earn £18,400 a year today to reach a decent standard of living, according to the foundation.

How the cost of your travel, food and energy bills has changed

THE types of goods and services required for a minimum living standard have remained broadly the same, but the cost and how people buy them has changed:

The cost of getting around – Public transport has become much more expensive and bus services have been cut.
As a consequence, transport costs take up nearly a fifth of minimum household budgets.
Bus travel is 65 per cent more expensive in 2018 than in 2008.
For a single person, the minimum transport budget has risen from £17 to £37 a week.

The weekly food shop– On average the cost of food rose by just over a quarter between 2008 and 2018, but a minimum food budget for a single person rose from £29 to £44 a week, a rise of just over 50 per cent.

Energy bills – On average energy bills are over 40 per cent higher than a decade ago, putting pressure on household budgets, despite the internet making it easier to shop around for better tariffs and more energy-efficient lighting making rises less steep for some households.

Childcare costs have risen sharply – The average price of a full-time nursery place for a two-year-old is now £229 a week, having risen by well over 50 per cent since 2008.
The government’s emphasis on early years development is reflected in parents saying, unlike in 2008, that families should have the choice of nursery care for their pre-school children, rather than only being able to afford a childminder.

Technology is increasingly important as part of day-to-day life. People are spending less today on technology and are more connected than they were ten years ago.
Broadband, a basic laptop and smartphone cost £8 a week today for a single working-age person, compared to £9.50 for a landline telephone and a pay-as-you-go mobile in 2008, despite inflation of 25 per cent.

While each parent in a working couple with two children needs to earn £20,000 – the equivalent of £40,000 for a family of four.

The JRF also said a single parent with a pre-school child must earn £28,450.

According to the report, a single breadwinner family was £520 a week short of achieving the minimum income standard in 2008, compared to £3,640 today.

While a couple with two children is about £2,600 a year short of to make ends meet if both parents work full-time on the minimum wage.

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Campbell Robb, chief executive of the independent Joseph Rowntree Foundation, said: “These figures show just how precarious life can be for low income households

“People who live below the minimum standard say that they shop around to get the best deals and juggle to pay the bills, but the soaring cost of transport, energy and childcare means millions of families are still locked in a daily struggle to make ends meet.”

“The Government must put things right by allowing families to keep more of their earnings.

“This would ease the constraints the crippling cost of living places on their ability to build a better life and ensure everyone can reach a decent standard of living.”

Budget 2017: Philip Hammond says National living wage will rise to £7.50

The five ways you can save on your grocery shop

Here is how you can cut your food bill

COMPARE food prices online. As with any purchase you’re about to make, you should always compare retailers to see who’s offering the best prices.

Use discount codes. It pays to check sites like MoneySavingExpert and VoucherCloud to nab supermarket discounts and voucher codes. A simple search online could help you save £10 or £20 off an online order.

Buy own-brand goods. Unbranded goods are significantly cheaper than their branded counterparts, so opting to buy the former could cut your bill down considerably.

BBC's Eat Well For Less? Gregg Wallace help's families save £5k a year on their food bill

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